RERA Complaint for Builder Delay in Possession: Refund, Interest and Appeal

If your builder has not given possession by the date in your agreement, Section 18 of the Real Estate (Regulation and Development) Act, 2016 gives you a choice. You can withdraw from the project and get your money back with interest, or you can stay and get interest for every month of delay until possession. File a complaint before your state’s RERA Authority under Section 31. Compensation is decided by the adjudicating officer under Sections 71 and 72. Either side can appeal to the Real Estate Appellate Tribunal within 60 days under Section 44. You may also go to the consumer commission instead.

What Section 18 gives you

Section 18(1) applies where the promoter fails to complete the project or is unable to give possession in terms of the agreement for sale, or by the date specified in it. Two options open up:

• Withdraw and take a refund. The promoter must return the amount received, with interest at the rate prescribed by the state rules, and compensation as provided under the Act.
• Stay in the project. If you do not want to withdraw, the promoter must pay you interest for every month of delay until it hands over possession, at the prescribed rate.

The interest rate is set by each state’s RERA rules, so check your state’s rules and recent orders of your state Authority instead of relying on a figure you read elsewhere.

In Newtech Promoters and Developers Pvt. Ltd. v. State of U.P. (decided 11 November 2021), the Supreme Court described the allottee’s right to a refund on demand as an “unconditional absolute right” where the promoter fails to give possession within the agreed time. That right is not defeated by claims of unforeseen events or stay orders. The Court also held that refund and interest are for the RERA Authority to decide, while compensation is for the adjudicating officer.

Step by step: filing a RERA complaint

1. Check the project on your state’s RERA website. Note the registration number and the completion date the promoter declared.
2. Collect documents. Agreement for sale, allotment letter, payment receipts, bank statements, demand letters, and any letters from the builder about delay.
3. Send a written demand. A short letter or a legal notice stating your choice: refund with interest, or interest for delay. This frames the dispute clearly.
4. File the complaint under Section 31. In Uttar Pradesh, register and file on up-rera.in. Choose refund or delay interest, and file a separate claim for compensation before the adjudicating officer if you want it. Pay the fee your state’s rules prescribe.
5. Attend hearings. Check the notice for whether your hearing is online or in person. Keep your complaint number and track it on the portal.
6. Enforce the order. If the builder does not pay, apply to the Authority for execution of its order.

Compensation, appeals and pre-deposit

• Compensation (ss.71 and 72). The Authority appoints an adjudicating officer to decide compensation. Under Section 72, the officer considers factors such as the unfair gain made by the promoter, the loss caused to you, and whether the default is repetitive.
• Appeal (s.44). Anyone aggrieved by an order of the Authority or the adjudicating officer may appeal to the Real Estate Appellate Tribunal within 60 days of receiving a copy of the order.
• Pre-deposit (s.43(5)). A promoter who appeals must first deposit at least 30% of the penalty, or the full amount payable to the allottee with interest and compensation, as the case may be. The Supreme Court upheld this condition in Newtech Promoters. It stops builders from using appeals only to delay payment.
• Second appeal (s.58). A further appeal lies to the High Court within 60 days of the Tribunal’s order, on the grounds in Section 100 of the Code of Civil Procedure.

RERA or consumer commission?

Section 79 of RERA bars civil courts from hearing matters the Authority can decide. In Imperia Structures Ltd. v. Anil Patni (2 November 2020), the Supreme Court held that a consumer commission is not a “civil court” for this purpose, and that Section 88 makes RERA an addition to other laws. So a homebuyer can choose between RERA and the consumer commission. Do not run both for the same relief at the same time.

• RERA: specialised forum, interest at the rate fixed by state rules, and a pre-deposit before any builder appeal.
• Consumer commission: useful where you also want wider relief for deficiency in service. Jurisdiction depends on the consideration paid: District up to ₹50 lakh, State above ₹50 lakh to ₹2 crore, National above ₹2 crore. See our e-Jagriti guide.

Example: Rahul and Pooja booked a flat in Greater Noida in 2021 with possession promised by March 2024. By October 2026 the tower is incomplete. They file on up-rera.in seeking a full refund with interest under Section 18, and a separate compensation claim before the adjudicating officer. The builder appeals, but must first make the pre-deposit under Section 43(5).

Frequently asked questions

Can the builder refuse a refund citing the pandemic or a court stay?

The Supreme Court in Newtech Promoters held the refund right to be unconditional where possession is not given within the agreed time, regardless of unforeseen events or stay orders. Specific facts can still matter, so read your agreement.

Who decides compensation: the Authority or the adjudicating officer?

Refund and interest are decided by the Authority. Compensation is decided by the adjudicating officer under Sections 71 and 72.

What is the time limit to appeal a RERA order?

Sixty days from the date you receive a copy of the order, before the Appellate Tribunal under Section 44.

Can I go to the consumer forum even though RERA exists?

Yes. Imperia Structures (2020) held that RERA does not bar consumer commissions.

What interest will I get?

The rate prescribed in your state’s RERA rules. It varies by state.

Quick quiz

Learn RERA, property and consumer remedies in the Certificate Course in Everyday Law for Every Indian (₹349).

Sources

• Real Estate (Regulation and Development) Act, 2016: Sections 18, 31, 43(5), 44, 58, 71, 72, 79 and 88
• Newtech Promoters and Developers Pvt. Ltd. v. State of U.P., Supreme Court, 11 November 2021
• Imperia Structures Ltd. v. Anil Patni, Supreme Court, 2 November 2020
• Consumer Protection Act, 2019 and the 2021 jurisdiction rules
• Uttar Pradesh Real Estate (Regulation and Development) Rules (for prescribed interest and fees in UP)

This page is for education and general information, not legal advice for a specific case. Law as on 29 October 2026.